Breaking News

You are here » Indian-Commodity  :  Economy  :  India tumbles to 6th spot in Grant Thornton business optimism index

09-May2018

India tumbles to 6th spot in Grant Thornton business optimism index

Grant Thornton in its latest International Business Report (IBR), a quarterly global business survey, has stated that India slipped to the 6th position in the business optimism index for the first quarter of 2018. It added that the business sentiment in the country was 'weakest' since 2014. It also said that the confidence has been shaken since the third quarter of 2017 with weakness in Indian rupee and a surge in oil prices. However, globally, the business optimism is at an all-time high, with index at net 61 percent, the highest figure recorded in 15 years of research.

As per the report, India is at the sixth place in the index with a score of 89, while the top five nations are Austria, Finland, Indonesia, the Netherlands and the US. In respect of India, it said that the underlying pessimism is reflected in other parameters as well including revenue, selling prices, profitability, employment and exports expectations. Indian businesses have been citing regulations and red tape, availability of skilled workforce, lack of ICT infrastructure and shortage of finance as the biggest growth constraints. The report conclusion was based on a quarterly global business survey of 2,500 businesses in 37 economies.

The IBR noted that even after India's significant jump in World Bank's Ease of Doing Business ranking, the country still continues to rank 1st or 2nd in quoting these reasons as the key hurdles for growth. Grant Thornton India LLP CEO Vishesh C Chandiok has said that the reversal in sentiment amongst mid- sized business in India in the last three quarters is startling and hoped that policy makers would sit up and take note. He added that 'With oil climbing, and India firmly in an election year, we ought to brace for a volatile economic environment in the days ahead. Export oriented businesses should see better days'.


Related News

View all news

Jaitley makes case for blending subsidy with investment to augment agri sector growth

In order to boost farm sector growth and make it sustainable and self-sufficient, Finance Minister Arun Jaitley made a case for blending subsidy with investment. He said formalisation of the economy has......

States likely to miss debt-to-GDP ratio target of 20% by FY23: Ind-Ra

The India Ratings and Research (Ind-Ra), a subsidiary of Fitch Ratings, has warmed that the states are likely to miss the 20% debt-to-GDP ratio target by fiscal year 2022-23 (FY23) as most of them have......

Merger of public sector banks to improve efficiency, governance: Moody's

A day after the government proposed to merge three public sector banks, global credit rating agency, Moody's Investors Service has said that merger of Bank of Baroda, Vijaya Bank and Dena Bank will be......

Top News

View all news

TI Financial Holdings to make investment of up to Rs 50 crore

TI Financial Holdings has received an approval for the further investment in shares of Cholamandalam Investment and Finance Company (CIFCL) up to 300,000 equity shares Rs 10 each, up to a sum not exceeding......

Glenmark Pharma inducts into Dow Jones Sustainability Indices 2018

Glenmark Pharmaceuticals has been listed on the Dow Jones Sustainability Indices 2018. Dow Jones Sustainability Index (DJSI) is one of the most esteemed global benchmarks for sustainable business practices.......

Tata Steel completes acquisition of 51% equity stake in CPDPL

Tata Steel has completed the acquisition of 51% equity stake in Creative Port Development (CPDPL). Earlier, the company had executed definitive agreement for development of Subarnarekha Port &......